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Loan against property


Loan against property is a loan availed against mortgage of property (residential / commercial). A secured product, the interest rate on loan against property is low & is available for long tenures. Loan against property in India is usually taken for commercial purposes.

How to get loan against property – 2 simple steps:
For getting loan against properties the applicant & their business is evaluated, followed by valuation of the property offered as collateral. Followed by quick sanctioning.

Eligibility & Documentation


  • Available for Business Entities & Self Employed Professionals
  • Applicant Age: Min. 25 years
  • Business Vintage: Min. 03 years


  • KYC
  • Income Proofs (ITR, Financial Statements, Projections, etc.)
  • Company Constitution Proofs & Registration Certificates (Business Entities only)
  • Property Papers



Loans starting from INR 50 Lac to 15 Crore.


Flexible Tenure of up to 15 years.


Quick Approval and Disbursal.


High LTV of up to 75%.

Loan Against Property

Loan Against Property

  • Loan Against Property involves pledging a collateral or security in the form of house/ property.

  • The loan amount is secured against the property being mortgaged, resulting in higher amount.

  • Such Loans offer several benefits in the form of lower interest rate, higher loan amount, longer tenure, in comparison to unsecured loans such as a personal loan.

  • Business Entities/ Self Employed Professionals can claim tax benefits.

Eligible Property Types for Loan Against Property

Eligible Property Types for Loan Against Property

  • Hero FinCorp offers the flexibility to use almost any property type for taking such loans

  • Commercial or Residential or Mixed-Use properties

  • Land, Building, Apartment, Commercial Premise, Shop, Factory, etc.

  • Alternate Assets, such as: Farm House, Vacant Plot/ Land, Hotel, Guest House, School/ College, Hospital/ Nursing Home, Industrial Properties, etc.


Product Features

  • Loan Amount: INR 50 Lac to 15 Crore

  • Loan to Value (LTV) Ratio: up to 75%

  • Flexible Tenure: up to 180 months

  • Available for Business Entities, Self Employed Professionals, Manufacturers, Traders, Service Providers, etc.

LAP – Use Cases (Why Choose Loan Against Property?)

LAP – Use Cases (Why Choose Loan Against Property?)

  • Ideal for professional and/ or business purposes, such as:

    • i. Business Expansion
    • ii. Plant/ Machinery Acquisition
    • iii. Project Financing, etc.
  • Debt Consolidation: LAP can help consolidate multiple smaller high prices loans (secured or unsecured) into a single lower priced loan, with a long tenure and higher overall loan amount

  • Lease Rental Discounting

  • Purchase of new commercial property

Refinance an Existing Loan – Balance Transfer (LAP BT)

Refinance an Existing Loan – Balance Transfer (LAP BT)

  • Refinancing allows you to transfer your Loan Against Property to Hero FinCorp on better terms

  • Balance Transfer helps in getting better interest rates, higher loan amount (top-up) and/or longer tenure

  • You may increase or decrease your tenure based on your repayment capacity

  • Even a 0.5% reduction on your loan can result in significant monthly savings

The Hero FinCorp Advantage:

The Hero FinCorp Advantage:

  • Higher Loan Amount

  • Attractive Interest Rates

  • Almost All Property Types Accepted

  • Long & Flexible Tenure

  • Multiple Repayment Options

  • Quick & Hassle-free Processing

  • Doorstep Service

Customer Testimonials

  • Iqbal Duggal, Ludhiana


    We took a loan against properties around five months ago, and found that the dealings with Hero FinCorp were very convenient. Their relationship manager handled the entire process from documentation to release of funds in a very smooth and hassle-free manner. The interest rate for Loan Against Property offered to us was very competitive. We strongly recommend Hero FinCorp.

    Iqbal Duggal, Ludhiana
    Business Owner

  • Aditi Jain, Hyderabad


    We wanted to take a loan against commercial property thankfully Hero FinCorp specializes in this. Our relationship manager understood the specific challenges of our company, and created a financing solution which was just right. On the whole Hero FinCorp proved themselves to be a reliable & dependable partner.

    Aditi Jain, Hyderabad

  •  Jai Kabra, New Delhi


    Our relationship with HFCL is a year old. We took the loan in view of building a long term relationship with a growing NBFC like HFCL and open the door for MDL Group's future requirements. Professionally speaking our experience with HFCL has been excellent on all fronts. Their Relationship Managers have a good understanding of the client’s needs. I believe, this creates a sense of satisfaction for both the lender and borrower.

    Jai Kabra, New Delhi
    President, MDL Energy Pvt. Ltd.

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    Q1 For what purposes can you avail Loan Against Property?

    You can avail Hero FinCorp’s Loan Against Property (applicable for both, Residential & Commercial Properties) for business purposes and activities which are not speculative or non-prohibitive.

    Q2 How is my loan amount eligibility decided?

    We decide your loan amount based on your repayment capacity. Further, the repayment capacity is considered on the basis of income, age, number of dependents, qualifications, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. In addition to considering these factors the maximum amount shall not exceed 85 per cent of the cost of property.

    Q3 Who can be co-applicant to the loan?

    You may include your spouse as a co-applicant for the Loan. His / her addition as a co-applicant can enhance the loan amount. Please not; all co-owners of the property should necessarily be the co-applicant.

    Q4 How is the loan repaid?

    The repayment of loan is done in Equated Monthly Installments (EMIs). This comprises principal and interest. Repayment by EMI commences from the next month in which you take full disbursement.

    Q5 What is Pre-EMI interest?

    Post final disbursement, you have to pay interest on the portion of the loan which is disbursed. This interest is called pre-EMI interest. Pre-EMI interest is payable every month, starting from the date of each disbursement up to the date of commencement of EMI.

    Q6 What security/collateral will I have to provide?

    The security/collateral for the loan will be the first mortgage of the property. Collateral security such as assignment of insurance policy or any such other assignable financial instruments would suffice the need, The title to the property needs to be clear, marketable and free from encumbrance. Most importantly there should not be any existing mortgage, loan or litigation on the property.

    Please do ensure that the title to the property is clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely.

    Q7 Can I repay the loan ahead of schedule?

    Yes. You can as per the terms mentioned in your loan agreement.

    Q8 Does the property require insurance?

    Yes, the property has to be duly and properly insured for fire and other appropriate hazards, as required by Hero FinCorp.

    Q9 Are Hero FinCorp policies subject to change?

    Yes. These policies periodically reviewed.

    Q10. How can I check my eligibility and loan amount?

    The following factors are considered to determine eligibility and loan amount

    • Age
    • Income
    • Valuation of the Property
    • Existing obligations
    • Stability/continuity of employment/business

    Q11. If a property is jointly owned by an individual and his/her relatives, can he/she take a loan against this property?

    It is necessary for all the co-owners of the considered property to be in as co-applicants to the loan.

    Q12. What is the tenure of the loan?

    Repayment of loan can be done over a maximum tenure of 15 years. Beyond the age of retirement or on reaching 60 years of the age, the repayment will not be ordinarily extended. However, Hero FinCorp will be endeavoring to determine the repayment period to suit your convenience.

    Q13. What are the end uses of the loan against property which can be sanctioned by Hero FinCorp?

    • Business needs
    • Mortgage buyout/Balance Transfer of existing loan
    • Consolidation of debt

    Q14. How long does it take to process a Loan Against Property application?

    The processing of the loan against property application usually takes 7 to 10 working days, post submission of all required documents.

    Q15. Is it necessary to insure the property?

    Yes, you need to make sure that the property is absolutely insured for fire and other hazards, as required by Hero FinCorp, during the tenor of the loan you would be required to produce evidence to us each year or a proof as asked for.

    Q16. How is the Equated Monthly Installment (EMI) calculated?

    Based on the loan amount, the repaying period and the interest rate on the borrowing amount the EMI is calculated. The EMI is subjected to change when interest rate changes or a part-payment of the Loan is made. Every month, part of the EMI is adjusted towards the interest payable and the balance is adjusted towards repayment of the principal.

    Q17. What are my different options for making my EMI payments?

    You may repay your LAP in any of the following four ways:
    Post-Dated Cheques (PDCs), Electronic Clearing Service (ECS), National Automated Clearing House (NACH) & Online Payment.

    Q18. How can I make a request to foreclose my Loan Against Property account?

    Kindly submit a written request to your nearest Retail Loan Service Centre to close your account. Our customer service desk will provide you with the necessary assistance.

    Q19. How do I apply for a Loan Against Property (LAP)?

    You can apply for a loan in the following ways:

    • Call our Customer Care numbers provided on the website
    • Visit your nearest branch
    • Our existing liability customers may also get in touch with their Relationship Managers/ Personal Bankers to know more and apply for LAP.

    Q20. What Property can be considered as collateral for LAP?

    Properties which are self-occupied Residential or Commercial for example shops and offices can be considered as collateral.

    Q21. What is the maximum loan I can get against my Property?

    You can get a Loan Against Property up to a maximum of 60%* of the market value of your property.**conditions apply

    Q22. Is there any minimum Credit Score requirement?

    There is no specific credit score requirement as per Hero FinCorp Limited policy. However, it is under the discretion of Hero FinCorp to accept or reject any loan application basis any irregularity noticed in the rating.

    You can avail loan against properties against residential or commercial properties, to fund a business need. The interest rate on loan against commercial property or loan against residential property is attractive and tenures are comfortably long. Also, since loan against property interest rates are lower than personal loan rates, it is better to go for a mortgage loan to meet urgent and substantial funding needs. To satisfy our eligibility criteria, you need to be a trader, manufacturer or service provider. To avail loan against property in India, your property must be valued above INR 50 Lac and it should be maximum 50 years of age. You should at least be 25 years old and submit proofs of age, income, property valuation, stability of your business, any existing obligations, and other relevant KYC documents. The property to be mortgaged has to be insured against fire or other natural calamities during the loan period, and property title should be clear and marketable. If you own the property jointly with someone else, then all the co-owners must become co-applicants for the loan. Please note that the loan amount and loan against property rate of interest depends on your repayment capacity and other eligibility factors. So simply fill up the form provided above to apply for the best mortgage loan now.

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